April 21, 2011 – The powers behind the status quo are hard at work trying to convince us not to shelter our wealth in gold bullion. The simple truth is they need our cash to keep their sinking ship afloat as long as possible so they can wring every last dime out of the economy before it finally crumbles into dust.

So far they have done quite well dismissing the S & P downgrade of our economic outlook, but that is exactly the sort of arrogance that makes a downgrade of our credit rating inevitable. Changing a sovereign’s outlook from stable to negative is the weakest statement the rating service could make and even at that it was wrapped up in the flag.

But with our currency being the world’s reserve “the fact that U.S. debt obligations could be put on negative watch is a disquieting, game-changing thought for a lot of the world … and now these people have turned to [gold]," said George Gero, vice president with RBC Capital Markets Global Futures to the Wall Street Journal. Japan has stepped forward with professed faith in the dollar, but that is only a thinly disguised attempt to protect the assets of the world’s second largest holder of US debt.

Agora Financial’s Editorial Director Eric J. Fry underscores the weakness of the dollar: “Would you believe that the top- performing currency of 2011 is the Paraguayan Guarani? And that's not all; the next best performing currencies are the Mauritian Rupee, Hungarian Florint, Czech Koruna, Russian Ruble and Colombian Peso … each of them has also appreciated at least 25% against the US dollar during the last two years.”

Meanwhile China is accelerating its program to globalize the yuan while stockpiling vast quantities of gold to shore up its reserves.

As reported in MSN Money, Standard Chartered Bank established a team to project gold’s future. The dollar’s decline along with “a number of structural factors - including consumer demand from Asia and tepid growth in supply” are combining to drive up the price of gold bullion, moving it into a new ‘super-cycle.’ Standard’s base forecast puts the price at $2,107 an ounce in the next three years, but “statistical modeling suggests a possible 'super-bull' scenario of gold prices rallying up to $4,869 in nominal terms by 2020.”

Physically held gold bullion not only puts real spendable money within easy reach for the worst case scenario, it is also one of the strongest investments you can make should it all play out in the best possible way.

Daily Updates Archive

Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org